Sony Smartphone market recovery will be delayed until 2024, slower than expected

Sony's smartphone market recovery will be delayed until 2024, slower than expected

【Phoneauto News】On August 10th, Phoneauto learned that Sony, the main supplier of smartphone image sensors, has postponed the earliest expected recovery of the smartphone market to 2024 after evaluating the deteriorating demand in the Chinese and American markets.

Sony is the world’s largest sensor supplier, providing sensors for the cameras of iPhones and other devices. Sony has raised its full-year revenue and income expectations, but attributes it to the gaming and entertainment industry, and warns that the smartphone market is still sluggish. Meanwhile, the entire industry is affected by the decline in demand for smartphones, computers, and tablets, and its major customer, Apple, is facing the longest sales slump in decades.

Sadahiko Hayakawa, Senior General Manager of Sony’s Finance Department, told analysts at a briefing, “The recovery of the Chinese smartphone market is slower than we expected, and the situation in the American market is also deteriorating. We originally expected the smartphone market to recover from the second half of this fiscal year, but now we expect it to be at least until next year.”

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Prior to this, market research firm TechInsights predicted that the global smartphone shipments in 2023 will continue to shrink to 1.16 billion units, a year-on-year decrease of 2.8% compared to 1.2 billion units in 2022. The firm stated that continued macroeconomic headwinds will continue to weigh on the global smartphone market in 2023 and 2024. Except for Africa and the Middle East, smartphone shipments in all regions in 2023 have been lowered.

In addition, an IDC report pointed out that consumer demand remains sluggish, and the smartphone market is hovering at a low point, with no significant improvement in shipments from manufacturers and upstream supply chains. Guo Tianxiang, Senior Analyst at IDC China, stated that the situation of the Chinese smartphone market in the first half of the year was lower than expected, especially when looking at the “618” mid-year promotion. Consumer demand is still relatively weak. Currently, observing the planning and development of new products in the second half of the year, it is difficult for both Apple and Android manufacturers to come up with disruptive innovative products.

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